MRF Share Price: India’s most expensive stock hits 52-week high at ₹1.5 lakh-mark, drops over 1% upon closing
- MRF Share Price: MRF stock price has now extended gains for the sixth consecutive trading session, however, it erased all gains and dropped over one per cent upon market closing earlier today.
MRF Share Price: India's most expensive stock MRF was locked at over nine per cent upper circuit to hit its fresh 52-week high mark of ₹150,000 or ₹1.5 lakh on Wednesday, January 17. MRF stock price has now extended gains for the sixth consecutive trading session, however, it erased all gains and dropped over one per cent upon market closing earlier today.
Starting the year at ₹129,439.2 apiece, MRF's shares have risen 15.8 per cent to date. In CY23, MRF shares surged around 30 per cent. The stock achieved the milestone of crossing the ₹1,00,000 mark in June 2023, becoming the first Indian company to do so.
Also Read: Nifty 50, Sensex suffer biggest single-day loss since June 2022; investors lose nearly ₹5 lakh crore
On Wednesday, shares of MRF opened at ₹136999 and gained 9.4 per cent to hit a 52-week high mark of ₹150,000 against a previous close of ₹136479.30 apiece on the BSE. Shares settled 1.1 per cent lower at ₹134969.45 apiece on the BSE.
Over the past 15 years, the stock has closed 11 years with positive performance, with CY14 being the standout year with a remarkable rally of 96 per cent, followed by 48 per cent in CY17. Throughout this period, the stock has exhibited an impressive growth of 5,588 per cent, surging from ₹2,003 to its current level of ₹134969.45 per share.
In the preceding July-September quarter, the company delivered a strong performance, witnessing a record 374 per cent year-on-year (YoY) growth in consolidated net profit, soaring to ₹587 crore compared to ₹123.9 crore in the corresponding period last year.
MRF recorded a 6.71 per cent YoY growth in operating revenue to ₹6,217 crore in Q2 FY24. Although revenue growth showed a marginal increase, MRF managed to improve its margins, primarily due to softened raw material costs.
The cost of materials consumed during the second quarter moderated to ₹3,748.9 crore, compared to ₹4,161.18 crore in the corresponding period of the previous fiscal year. The total expenses were also lower at ₹5,497.21 crore, as against ₹5,729.82 crore in the same period a year ago, said MRF.
Meanwhile, domestic equity benchmarks Sensex and Nifty 50, witnessed their biggest single-day percentage loss since June 2022 on Wednesday dragged by across the board selling amid weak global cues. The benchmark Sensex tanked 1,628.01 points, or 2.23 per cent, to end at 71,500.76, while the Nifty 50 settled 460.35 points, or 2.09 per cent, lower at 21,571.95.
The freefall was predominantly triggered by a substantial decline in HDFC Bank's share price, a day after the company reported its December quarter results. HDFC Bank share price plunged over eight per cent even as the bank reported in-line Q3 numbers. Analysts pointed out that investors appear to be concerned about the Q3 margins which came largely flat.
‘’Nifty 50 ended the day battered and bruised at 46,064, leaving investors in a state of shock and analysts desperately searching for answers. The technical Bank Nifty has witnessed a breakdown of a head-and-shoulders formation on the daily chart with heavy volume selling,'' said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
The overall market capitalisation of the firms listed on the BSE dropped to nearly ₹370 lakh crore from nearly ₹375 lakh crore in the previous session, making investors poorer by about ₹5 lakh crore in a single session.
‘’The investors should always look at the broader picture with a long-term view and should ignore any short-term noise. The only thing that is important is to maintain proper asset allocation and avoid penny stock ideas. The idea of making quick money should be avoided,'' said Mukesh Kochar, National Head of Wealth at AUM Capital.
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